Where cozy means tiny and charming means needs work.
A property tax based on the assessed value of real estate, meaning the more your property is worth, the more you pay. Latin for 'according to value,' or as homeowners call it, 'penalty for improvement.'
A metric comparing property income to debt payments, calculated by dividing net operating income by annual debt service. Commercial lenders worship this number, typically requiring 1.25 or higher to prove you can actually afford the loan.
The Federal Home Loan Mortgage Corporation, Fannie Mae's government-sponsored sibling that also purchases mortgages to stabilize the housing finance system. Together they're like the Batman and Robin of mortgage liquidity, if superheroes needed periodic taxpayer bailouts.
A fee charged for paying off a mortgage early, compensating lenders for lost interest income. It's the bank's way of punishing you for financial responsibility and denying them years of interest payments.
The four horsemen of monthly housing payments: Principal, Interest, Taxes, and Insurance. It's the total amount you'll shell out each month to keep a roof over your head and the bank off your back.
The theoretical rental income from a vacant unit that's factored into pro forma projections but not actually being collected. It's the imaginary money that makes cap rates look better on paper than they are in reality.
An even more secretive version of a pocket listing, shared only with a select few high-net-worth clients. It's so exclusive that talking about it too loudly could violate the whole point.
The escape hatch in every smart buyer's offer—a contingency allowing them to back out or renegotiate if the inspection reveals the house is held together by hope and termites. It's the 'just kidding' clause of real estate.
A lease that gives the tenant the right to sublease the property to others, essentially making them a middleman landlord. It's landlording with training wheels, or a profit opportunity, depending on your perspective and local laws.
A formal eviction warning telling tenants to pay up, shape up, or get out. The landlord-tenant relationship's breakup letter, now with legal consequences.
A deep dive into public records to verify legal ownership and uncover liens, judgments, or claims. Property background check revealing whether you're buying real estate or a lawsuit.
The window of time when buyers can inspect, investigate, and potentially back out of a deal without penalty. It's when you discover that 'vintage charm' actually means 'original 1950s electrical wiring that might kill you.'
The real estate agent's crystal ball that uses nearby home sales to predict what yours might sell for. It's part science, part art, and part wishful thinking depending on who's paying for it.
A property title free from liens, encumbrances, or legal questions about ownership, making it transferable without complications. It's what every buyer wants and what title insurance companies charge handsomely to verify.
The legal right to develop land according to approved plans, secured through zoning approvals, permits, and regulatory compliance. Developers chase these permissions like dragons hoarding gold, because they dramatically increase land value.
The original loan amount borrowed, excluding interest, or in agency relationships, the person represented by an agent. Context is everything, because confusing the two can make closing statements deeply confusing.
Zoning rules dictating the minimum distance a building must sit from property lines, streets, or other structures, preventing neighbors from building right up to your fence line. It's mandatory personal space for properties.
A detailed examination of a property by a professional to find all the problems the owner conveniently forgot to mention.
A valuation method comparing a property to similar recent sales in the area, also known as 'pretending your house is worth what you want it to be.'
Property price divided by annual rental income, a quick valuation metric for income-producing properties.
The rate at which available homes are sold in a specific market during a given time period. Think of it as the speed at which the market 'eats' inventory—crucial for determining whether you're in for a feeding frenzy or a slow dining experience.
Legal documents where sellers reveal known defects, issues, or stigmas about a property. It's where you learn that 'charming' means 'haunted' and 'original fixtures' means 'nothing works.'
When the seller provides financing to the buyer instead of requiring a traditional mortgage, essentially becoming the bank. It's either a creative solution or a sign someone couldn't qualify for actual financing.
A secondary loan that 'wraps around' an existing mortgage, where the new lender pays the original loan. It's financial inception—a loan within a loan, typically used when someone can't refinance.